According to the World Energy Statistics Survey, the United States and China will account for 60.4% of the world's total coal consumption in 2021. More specifically, China's share will be 53.8% and the United States will be 6.6%.
The same is true for other energy sources such as oil and natural gas. These two countries are the largest consumers in the world. American oil consumes 20.4% of world oil and 16% of Chinese oil. Meanwhile, US natural gas consumption accounts for 20.5% and China's 9.4% of total natural gas consumption.
In contrast to coal, oil and gas prices can rise because the United States is the world's largest exporter of oil and gas, with a market share of 14% for oil and 18% for gas.
Inflation is also accelerating because apart from rising electricity prices, the government tends to print money to finance wars. Interest rates will also rise to neutralize inflation. As a result, the US dollar has the potential to rise as it acts as a hedge against rising central bank interest rates. This will worsen the national debt and potentially trigger a recession or even depression.
Depression is long-term depression. During the First World War, there was a depression that lasted for approximately 10 years starting in 1929. The current global economic situation is very sensitive to inflation, and a recession is possible.
US President Joe Biden has announced that he is prepared to intervene militarily if China insults Taiwan. This was announced during a visit to Japan during a meeting with Prime Minister Fumio Kishida.
"Yes (about military participation in Taiwan's defense), that is our commitment, we accept the One China Policy, we signed it and all the agreements with it, but the idea that they can take it by force is not true," Biden said.
The Chinese government reacted sharply to this response. Chinese Foreign Ministry spokesman Wang Wenbin said the Taiwan issue was China's internal problem.
"We regret and reject the US statement. Taiwan is an irreplaceable part of China's territory. The Taiwan issue is purely China's internal problem, in which foreign countries cannot interfere. On issues related to China's core interests, such as sovereignty and territorial integrity, "there is no room for compromise," Wenbin said.
"Keep your integrity and don't act against the 1.4 billion Chinese people. We call on the United States to strictly adhere to the One China Policy and Three Joint Declarations, and fulfill its important commitments in supporting Taiwan's independence," Wenbin continued.
